Ecobank investors back $3 bln issue, Nigerian deal

By Kwasi Kpodo

ACCRA, May 16 (Reuters) - Shareholders of Africa's fast-growing Ecobank Group ETI.GHECOB.LG on Friday approved proposals to raise $3 billion in debt or equity and proceed with merger talks with Nigeria's First Bank FBNP.LG.

Ecobank Chairman Mande Sidibe said an annual general meeting in Ghana's capital Accra gave management a mandate to push ahead with talks with First Bank, which were progressing well.

"All I can say now is that the basic (merger) principles have been agreed by both parties," Sidibe told Reuters.

"We will meet tomorrow (with First Bank) to update and give them a progress report from the shareholders after which we will seek to move ahead quickly to tie the loose ends."

Sidibe, a former Malian premier, said the $3 billion would be used to capitalise some affiliates and fund technological transformation and new acquisitions.

Sidibe said Ecobank hoped to raise the capital mainly through the three stock exchanges where it is listed: Lagos, Abidjan and Accra.

"We have also been given the mandate to explore various options to raise part of the money in the international market and we are working on those," Sidibe added.

"We are looking at doing the GDR (global depositary receipts). We can also do a bond issue on the debt side, or even list on the international stock exchange."

Ecobank Chief Executive Arnold Ekpe said management had appointed advisers to study a range of possibilities.

Shareholders also approved a dividend of 2 cents, up by 33 percent over the previous year, and a stock split.

Ecobank revenue grew 56 percent to $544 million in 2007, while pre-tax profit rose 47 percent to $191 million.

Profit after tax increased 61 percent to $139 million in 2007, with total assets growing 87 percent to $6.6 billion.

Set up in 1985, Ecobank now operates in 22 countries, after entering five new markets in 2007. (For full Reuters Africa coverage and to have your say on the top issues, visit: africa.reuters.com/ ) (Editing by Daniel Flynn and Braden Reddall)